Question

Consider the prospect of new equity owners and explain why this is important for company expansion throughout the U.S and ultimately-expanding globally for freeing up cash flow to raise more capital.

Answer 1

We know that present age is of high competition and every firm & company want to expand its’ business throughout the county and in other countries as well. Thus we cab say that due to desire of more & more expansion these firms & companies requires more capital.

We also know that equity is the very reliable source of capital because this is a permanent and long-term source of finance thus most of the firms & companies want to raise capital through equity. Apart from this firms & companies do not need to pay regular interest payment on equity capital hence equity is the very popular source of finance.

Due to use of more technology in the capital market and wide area of capital markets every firms & companies can raise capital through equity very easily hence raising capital through equity is quite posiible. So we can say that now-a-days raising capital through equity throughout the country and other parts of the world is quite possible.

An investor who is living any part of the world now can make investment in any firm & company through capital market without much trouble because existence of capital market and use of modern technology made is more easy for the equity investors to make investment in the companies located in the USA. Thus we can say that there are full & wide chances for the equity owners to make investment in any part of the world.